Innovation Management and Sustainability

The assignment delves into the concept of innovation management, highlighting its significance in enabling open innovation, technological innovation capabilities, and firm performance. It also discusses business model innovation and competitive imitation, as well as the role of managerial innovation in driving organizational success. The summary provides an overview of the key concepts and themes discussed in the articles and journals referenced.

INNOVATION AND
COMMERCIALISATI
ON
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Table of Contents
Introduction................................................................................................................................................3
TASK 1.........................................................................................................................................................3
P1: Innovation and its importance to organisation.................................................................................3
P2: Organisational vision, leadership, culture and teamwork supports innovation................................5
TASK 2.........................................................................................................................................................6
P3: 4Ps of innovation...............................................................................................................................6
P4: Developments in frugal innovation...................................................................................................8
TASK 3.........................................................................................................................................................9
P5: Importance of the commercial funnel and New Product Development............................................9
P6: Innovation Business Case...............................................................................................................10
TASK 4.......................................................................................................................................................12
P7: Different tools for developing, retaining and protecting knowledge and intellectual property......12
CONCLUSION.........................................................................................................................................13
REFERENCES..............................................................................................................................................14
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Introduction
Innovation in business refers to the new ideas for business and improvements in current
offerings of the firm. Whereas commercialisation is the process of marketing these products and
services to the market in order to attract more customers. These both play a major role in the
sustainability of the firm so that it can operate for a long period of time in the market.
Innovation is necessary for firms so that they can stay above of the competitors in the market for
acquiring a higher market share. Essence drinks is the taken organisation in this assessment
report which is providing different types of soft and healthy drinks to the customers in UK.
Company has seen major rise in the market in the last 2 years. This report will cover the various
concepts of innovation and invention and the contribution of different aspects in the process of
innovation and commercialisation. Further this report will cover the 4P's model of innovation,
utilisation of innovation funnel, necessity of commercial funnel along with NPD. In last this
report will provide the necessary requirements for business by using innovation business case
along with the methods for protecting the intellectual property.
TASK 1
P1:
Essence drink was established by Akshay kumar as Beverages Company with a healthy
mango lassi into the UK market. The firm has seen a dramatic rise in sales in his first year
because of its innovative idea and distribution capability. The company is facing threats from the
new competitors who are entering into this market. Innovation is necessary for the company in
this time so that the firm can survive for a longer period of time in the market.
Innovation is the process of inventing new offerings in the market in order to meet the
requirements of the customers and market (Bianchi and et. al., 2010). Innovation drives ideas for
enhancing the capabilities of the firm and employees for enhancing the productivity and
sustainability of the business in market. Innovation is very essential for the Essence drinks in
order to improve the decreasing profit and sales of the company. Through innovation, Essence
drinks could meet and satisfy their customers and employees so that the company can attain the
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sustainability in the market. The company has decided to introduce their brand new organic fruit
juice in the market for which innovation is very important.
Importance of innovation to Essence drinks
In order to launch their new drink for improving the sales and profit, several innovative
suggestions or importance of innovation to company are given below:
 Innovation is necessary for the company in promoting the new product to market in an
improved way for increasing the awareness in the market. Essence drinks can use social
media for promoting the products and can target the customers who are interested in food
with the help of market research (Camisón and Villar-López, 2014).
 Company can use the innovative block chain technology for bringing clarity in the supply
chain. This innovative technique is necessary for eliminating the errors in supply chain.
Innovation is very important for the Essence drinks instead of invention as through the
innovation, firm can enhance the quality of their products along with the making of
modifications in existing products. Through the innovation, Essence drinks can achieve the
desired growth in the market as customers determine the products having innovative features and
uses. Invention is focused on new products whereas innovation is focused on development of
current offerings in order to enhance the profitability of the firm. Also by using the innovation,
company can provide the additional values to their customers in return of money which will
enhance their satisfaction level too.
Difference between Innovation and Invention
Definition: Innovation is the process of bringing new ideas for organisation and to
implement them for improving performance and productivity of the Essence drinks. Whereas
Invention is the process of developing new tools, methods, techniques etc. for effectively
carrying out the operations and activities of the Essence drinks.
Concept: Innovation is focused on concept of developing improved and better version of
existing products. Whereas Concept of invention is to develop new products and services for
satisfying the needs and requirements of the customers.
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Focus: Innovation is focused on improving the existing products for improving their
efficiency. Whereas invention is focused on hiring new employees who can develop new
products for the company.
P2:
The business firms of 21st century are focused on innovation for staying ahead of the competitors
in the market place. This innovation usually occurs in form of products, services, strategies etc. for
improving the sales and profit. Team work, vision, culture and leadership are necessary for driving the
innovation in Essence drinks. These are necessary for performing the organizational functions. These
factors in Essence drinks are described below: Vision: It is the most important aim or statement of a company which helps the firm in executing
their operations and function for achieving this. This is also called as the long time objective or
goal of the company for which the workers are performing their work (Casadesus‐Masanell
and Zhu, 2013). The vision of the Essence drink is to establish the image as big company of the
beverages market and to earn the maximum market share in the market. For launching the new
organic juice in the market, vision of Essence drinks is to increase the sales of firm in upcoming
years as well as to acquire more market share by launching a new innovative product. Leadership: Leaders plays a major role in a company. Leaders motivate the employees to bring
maximum efforts for accomplishing the desired organizational vision. In order to launch their
new juice, Essence drinks needs to hire a new employee having proper innovative skills to
motivate the workers in the time of declining sales due to which they could perform their
assigned work properly for achieving the goals of organization. Team Work: It is the major factor which supports the organization in executing the operation sin
innovative manner. Team working spirit is necessary among the employees for performing their
roles in proper manner without any problem. The leader of the Essence drink has such
responsibilities for motivating and encouraging the employees to work in team for executing their
work. Management needs to ensure that the new employee has such skills for performing the
work in proper manner.
 Culture: It also drives the innovation as good and healthy working culture help and motivate the
employees to work hard in their work. This is also necessary for resolving the conflict of
employees. Management of the Essence drinks needs to ensure that a creative and harmonious
environment must be maintained at the workplace so that employees can work with required
efficiency and performance.
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These above discussed factors drives or hinder the innovation in an organisation. It is the
responsibility of management to properly understand these factors for launching their new organic juice
in the UK market for obtaining effective and improved results and profit (Cooper, Seiford and Zhu,
2011). Essence drinks desires to enhance their market share and profitability due to which they are
focusing on launching new products from their existing products range. These factors plays a major role
in shaping the innovation for achieving the increased market share and profitability. Through the team
work, company can generate new ideas so that the work can be executed through resolving the issues.
Leaders provide their support and guidance to the workers so that their issues can be resolved easily. The
vision shapes the innovation as it provides the objectives which should be accomplished by the company
for which the innovation is being done. The culture is also essential as through this, workers get the
desired support and help from the team members in order to perform their work for innovating new things
and ideas.
TASK 2
P3:
Innovation is essential for the organizations in this rapidly changing technological world.
It is helpful for the firms in attracting more customers for purchasing the offerings of the
organisations which are provided to them. Trends in Market and consumers are continuously
changing which leads to the change in taste and preferences of the customers. For handling this
issue, Essence drinks can use the 4 P's model of innovation as discussed below:
Figure 1: 4 P's of Innovation Mix
(Source: 4 P's of Innovation Mix, 2010)
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Product: It is the first stage of NPD which will be provided to customers after launching.
Essence drinks is launching their new organic juice which is a innovative idea for the UK
market. The company can determine the changes in the customers of UK before launching this
product so that the product can perform better in the market. Also company needs to determine
the type of products consumed by the customers so that proper product can be developed.
Process: It is a major element for improving the quality and features of a product.
Essence drink is implementing innovative tools and machinery in their processes for ensuring
that quality based product is delivered to customers. This implementation will also improve the
sales of the company as improved featured products are provided to them (Damanpour and
Aravind, 2012). The company needs to determine the suitable processes through which they can
develop and provide their new products to the consumers for improving their satisfaction and
experience level.
Position: It is the method of placing the order in an appropriate market. Essence drinks
can position their product in a market having high fruit sales. The company should identify the
market having high consumption of the food products. Also company can use their website for
attracting online customers. The company needs to determine the suitable channel for
positioning their products so that the product stay visible to a large number of customers which
will also improve the sales and brand image of the company. By placing the products in suitable
market, company can ensure that the new product will attract more customers for the company.
Paradigm: It is the continuous process of sustaining of a product in the market. This can
be achieved by the Essence drink through modifying the existing products or new product which
will satisfy their customer needs. The company should determine the preferences of their
customers in order to modify their existing products for improving the sales and profit. Also
through this, the product can sustain in the market for a long period of time in order to ensure the
sustainability of company.
Innovation funnel and its usage
Innovation funnel is the concept of improving a product or service. It provides the steps
which can be utilised for modifying products effectively. It is a 3 stage process in which a idea is
gathered from the employees and customers for the new product development process. After
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that, an idea is chosen which is implemented for new product development. Essence drink can
use the innovation funnel as it is beneficial for the company in determining the course of action
which will be followed by management in order to successfully implement the required
strategies for new product development (Dries and et. al., 2014). Innovation funnel is very
beneficial for the Essence drink for introducing their new product in the market. Through the
innovation funnel, company can effectively provides its offerings to the customers so as to
enhance their satisfaction and experience.
Through the 4 p's of innovation and innovation funnel, company can determine the
aspects which are essential for developing an innovative product. The 4 p of innovation will
assist the Essence drinks in determining the suitable processes and targetted customers so that
the product can be developed accordingly as well as company can take the suggestions from the
customers so that proper and innovative product can be developed for improving the satisfaction
and experience of customers.
P4:
Frugal innovation is the method for lowering the cost of the products and services during
the development. It decreases the cost and improves the feature which will improve the sales of
the company and its products which are provided to the consumers. This kind of innovation is
useful for the people and firms in reducing the cost of manufacturing, proper electricity
utilisation, lowering service cost etc. Essence drink is utilising the frugal technologies such as
websites, social media in order to determine and meet the needs of their customers by providing
them products at low prices (George, McGahan and Prabhu, 2012). Frugal innovation has six
principles which must be followed by Essence Drinks Company and are discussed below:
 Sustainable Solution: Company needs to determine the issues and conflicts of the
organizations for resolving them. Through this, the issues can be resolved which will
enhance the growth and sustainability of the company. Asset Flex: Company should focus on innovation during the process of new products
development so that proper and appropriate strategies can be implemented in order to
ensure the sustainability of the product in marketplace.
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 Form Consumer Behaviour: Company can provide effective products to customers by
analysing their needs and preferences. This is also helpful in developing proper
strategies. Iterate and Engage: By using, innovative techniques and methods for developing
strategies, company can achieve the target goals. Stakeholder Innovation: Company needs to use effective communication and interaction
system for organising and coordinating among the different stakeholders.
 Consumer Value Creation: It is an effective system which can be used by the firm for
assisting the customers so that better products and services can be provided to them.
Through the frugal innovation, company can offer their offerings to customers in
effective manner. This will satisfy the customers and company can sustain for a long period of
time in the market (Guan and Chen, 2010). Frugal innovation model is the method of
eliminating the extra complexity and cost of a goods during the production. Through this model,
the companies can produce quality based products and services which are offered to consumers
which are also durable and sold to the developing countries. This model is very useful for the
Essence drinks in launching their new product so that the market share and profit of the company
can be enhanced as the waste has bee reduced and quality has been improved. For example:
Essence drink will reduce extra fats and carbohydrates from the new product i.e. lassi under
frugal innovation due to which the cost for producing the product can be reduced for improving
the profit and sales of firm and the product can be provided to the customers at affordable prices.
TASK 3
P5:
This section of the report will cover the definition and use of commercial funnel along
with the stages and definition of new product development which are as follows:
Commercial funnel: It refers to the method or concept through which organisations
convert the people into their customers. This concept is basically used by the companies of sales
and marketing or departments for understanding their sales process in order to measure their
success rate between the each steps of the innovation funnel. It is used for promoting the product
to customers.
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New product development: It is an effective process for achieving higher competitive
edge in the market by providing innovative products and services. Essence drink is launching
their organic juice for providing healthy and on the go drink to the customers for satisfying their
nutrients requirements (Ke and et. al., 2015). The stages for NPD are as discussed below:
Imagining: It is the first stage for launching the organic juice. In this step, ideas will be
generated from various stakeholders of the organisation in order to include them in the final
product. The chosen idea is implemented in the development of final product. Decision
regarding to develop the product or not is taken in this stage.
Incubating: It is the stage in which are analysed by the experts in order to choose
suitable one. Chosen idea is included in the final product. The idea is chosen based on the
challenges arises in development of product, needs of the customers, demand from the market
etc.
Demonstrating: In this stage, a test product is developed for determining the issues and
errors from the sample customers. Feedbacks and suggestions are taken from them for improving
the weakness. Also attractiveness of the final product is determined by the higher authorities in
terms of profit, sales and revenue.
Promoting: In this stage, the product is promoted to the market and customers in order to
spread the awareness among the public that new product is launched by the company. In this
stage, the developed final product is launched and marketed in the market having high demand
of juice and healthy drinks.
Sustaining: It is the last stage in which the new product is modified by the company
based on the reviews and responses from the different stakeholders so that the products can
sustain in the market for a long period of time.
P6:
Business case is necessary for the organisations in order to determine the necessary
factors of success and growth of the newly developed products. The Essence drink is a new
organisation thinking to launch new organic juices. For this, the business case is as follows:
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Executive summary: Essence drink is a beverages firm started in 2016 which sold
mango lassi in its first year. Later the company rapidly gain growth in the second year. Company
is thinking to launch a new organic juices for satisfying the nutrients requirements of the
customers (McCoy and et. al., 2010). Company is thinking to launch a new range of organic
juices for satisfying the nutrients requirements of the customers as well as to enhance the market
share and profit in the UK market for achieving the sustainability. For this, the company is
launching their new drinks in the UK market so that the objectives can be achieved in the
predetermined time period.
The need: The sales and profit of the organisation is decreasing from last several months.
For handling this issue company is thinking to launch something innovative product which can
fulfil the needs of customers which will improve the sales and profit of the firm. Essence drink
needs to determine the issues of people for targeting them to fulfil their needs.
Solution: For this new product, company needs to target the customers having healthy
eating habits and prefers juice once in a day. This is necessary for attracting potential customers.
This solution will attract more customers towards the new juices. Also the company needs to
promote the product on social media and website for raising awareness regarding the product
among the customers.
Why it is innovative: After determining the solution, management needs to determine the
effectiveness of these solutions so that the decisions can be taken accordingly. The management
needs to determine the innovative ability of the newly developed organic juices so that it can
attract more customers through word of mouth.
Customers Research: The management of the Essence drink needs to conduct market
research for determining the requirements of the customers in order to provide the offerings
accordingly to them. It is also necessary for determining whether the product can satisfy the
consumers or not (Vaccaro and et. al., 2012).
Investment Requirement: The management of the Essence drink needs to gather the
funds which are required for the production, marketing and selling of the organic juice. The
management needs to consider the appropriate source of funding for collecting the required
amount of money. Company can use the funding sources such as financial institutional, banks,
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owners capital etc. for arranging the funds in order to ensure smooth running of the business
functions. Company can use the funding sources such as financial institutional, banks, owners
capital etc. for arranging the funds in order to ensure smooth running of the business functions.
Through these funds, company can acquire the various resources required for the success of the
product. Also these funds will be used for marketing activities of the product. The marketing of
the product is done by social media and internet platforms. However the bank loan is the very
effective for the company as bank provides the loans to firms at low interest which can be paid
in instalments in an predetermined time of period.
TASK 4
P7:
The different tools and techniques for developing, retaining and protecting knowledge and
intellectual property are determined below which can be used by the Essence drink for protecting their
new product:
Patents: A patent usually grants property rights on an invention and innovation that allow a
patent partner to hold and exclude other for making selling or using innovation of a particular
organisation. Thus, an innovation allows business to become successful as it helps a business to grow and
develop and attain competitive marketplace. This tool is very effective for the firm as the newly
developed product of Essence drink is a lassi and this product can be copied by the firms but not the
features and specifications.
Trademark: A trade mark is a word that describe symbol or design that distinguish source of
products of a particular business from its competitors in this way an organisation can maintain their
intellectual property from its high competitors (Vishnevskiy, Karasev and Meissner, 2015). However
there are chances that the competitors can stole the product specification and launch it with the new
symbol or design due to which this is not effective in protecting the new product of Essence drink.
Copy rights: Copyrights are usually protecting origin frameworks that create a unique identity of
product and services. Moreover, when an organisation have a copy right then an individual have proper
rights to have exclusive right to modify and distribute ,perform and display their goods and services in
an attractive manner. This tool is also effective for the business of Essence drink as they can make
modification in their product if the taste is copied by the competitors.
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The above discuss points will help an organisation to develop and retaining and gain knowledge
for their intellectual property in an attractive manner so that an organisation can attain its aims and
objectives in an attractive manner. Essence drinks can use the patent for protecting their intellectual
property rights. This method is advantageous for the Essence drink as the firm can acquire the
right to stop others from copying, manufacturing, selling or importing the inventions of firm
without any permission. However, by using this method, the information of the product becomes
public due to which chances of copying is high. This method can protect the data the idea of
Essence drink upto a specific extent.
CONCLUSION
From the above discussion it has been concluded that innovation in business refers to the new
ideas for business and improvements in the existing products and services provided by an organisation.
As this help an organisation to maintain to to bring out new and innovative product and services in an
attractive manner so that an organisation can achieve its goals and objectives in an effective manner.
Moreover, commercialisation is the process of marketing these products and services to the market in
order to attract more customers. Furthermore, innovation usually occurs in from of product and services
that create strategies in improving sales and profit that help an organisation to maintain its unique
position in competitive marketplace. Thus, with new innovation and invention an organisation will bale
to sustainability for longer period of time as well as able to achieve its goals and objectives in an
attractive manner.
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REFERENCES
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Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business
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Casadesus‐Masanell, R. and Zhu, F., 2013. Business model innovation and competitive
imitation: The case of sponsor‐based business models. Strategic management journal.
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Cooper, W. W., Seiford, L. M. and Zhu, J. eds., 2011. Handbook on data envelopment analysis
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Damanpour, F. and Aravind, D., 2012. Managerial innovation: Conceptions, processes and
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Dries, L. and et. al., 2014. Keeping your secrets public? Open versus closed innovation
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George, G., McGahan, A.M. and Prabhu, J., 2012. Innovation for inclusive growth: Towards a
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Guan, J. and Chen, K., 2010. Measuring the innovation production process: A cross-region
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Ke, W., Fang. and et. al., 2015. Low-temperature solution-processed tin oxide as an alternative
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McCoy, A. P. and et. al., 2010. Concurrent commercialization and new-product adoption for
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Online
4 P's of Innovation Mix. 2015. [Online]. Available through:
<https://innovationmanagementsite.wordpress.com/2015/09/07/innovation-space-4ps/>.
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